• The Financial District

A THIRD OF US AIRLINE WORKERS TO LOSE JOBS IN LAST QUARTER

Up to a third of the 750,000 pilots, cabin crews, flight attendants, baggage handlers, mechanics and others are bound to their jobs once the $25-billion CARES Act federal bailout for the airline industry is consumed and the ban on layoffs, involuntary furloughs or pay cuts for employees is lifted on October 1, writes Chris Isidore of CNN Business on late on May 10, 2020.

Isidore says about 100,000 workers at the four largest US carriers -- American (AAL), United, Delta (DAL) and Southwest -- have already taken voluntary unpaid leaves or low-paid leaves, or 26% of the workforces of the four airlines.


The airline industry is bleeding, with losses of $2 billion for the first quarter alone, with the midyear report to be even bloodier even as some sort of recovery may take more than a year or two to happen.


Isidore writes that the federal bailout only covers two-thirds of overall labor costs through September, argues Philip Baggaley, the chief credit analyst for airlines at Standard & Poor's and buyouts and retirement offers could slash between 20% and 30% of airline jobs. #coronavirusimpact #COVID19

Register for Newsletter

  • LinkedIn
  • Instagram
  • YouTube

WHERE BUSINESS CLICKS

@2020 by The Financial District